Preparing an S-Corporate return in ProConnect Tax

In this article, we'll go over the general flow of completing a S-Corporate (Form 1120S) return in ProConnect Tax, as well as some potential next steps.

1. Create the client in ProConnect Tax by selecting the Clients tab ‌on the top left side of the screen and Add client from the upper-right. Make sure to select Business (1065, 1120, 1120S, 990, 1041), then enter the client's information and select Next.
2. Create a new tax return for the client by going to the Clients screen, selecting the Actions menu, then Create a new tax return. Here you can select the 1120S - S-Corporate return type and select the appropriate tax year. Select Next to begin the tax return.
3. On the Profile tab, you can select the main form (Federal, Federal Form 114, and applicable states. 
   • For more info on adding states, see here.
4. Select the Input Return tab on the upper left of the screen to start preparing the return.
5. Add shareholders by going to Shareholder information and use the + tab to add more shareholders
6. Add shareholder stock percentages by going to Stock Ownership, which you can find under the Shareholder Information section.
   • For more info on this, see here.
   • If you need to report a change in ownership, go to Shareholder Information⮕Change in Stock Ownership.
     • For more info on this, see here.
7. For the main form, Form 1120-S page 1, information and amounts can be entered as follows:
   • Inputs for A-J are mainly found in General ⮕ Client information and General ⮕  Miscellaneous Information.
     • For info on finding inputs for a line or box, see here
   • Income (lines 1a-6) and Deductions (lines 7-22) can be found under the Ordinary Income section of the Input Return tab.
   • The Tax and Payment section is a combination of direct inputs and calculations.
     See related articles:
     • Excess Net Passive Income Tax on Form 1120S
     • How to enter estimated tax payments
     • Entering additional estimated tax payments
8. Inputs for the Schedule B are found in General ⮕ Client information and General ⮕  Miscellaneous Information.
   • For info on finding inputs for a line or box, see here.
9. Next, entering information for Form 1120-S Schedule K can be found in the Schedule K section of the Input Return tab.
   • Amounts from the Schedule K will flow to the shareholder’s Schedule K-1 based on the stock ownership % from the Stock Ownership screen.
   • The Income and Deductions screen is a combination of direct inputs as well as adjustment [Adjust] and overrides [Override] of automatic calculations.
   • If you have other deductions or income (loss) that you to report at the Schedule K-1 level, go to Schedule K ⮕ Other Schedule K items.
     • For more info on this, see here.
10. For the Schedules L, M-1, and M-2, use the following articles depending on the situation:
    • If you need to suppress Schedules L, M-1, and M-2, go to General⮕ Client information and General ⮕ Miscellaneous Information.
      • For more info on this, see here.
    • If you need to force Schedules L, M-1, and M-2 to generate, go to Balance Sheet, M-1, M-2, M-3⮕Balance Sheet Miscellaneous ⮕ Other.
      • For more info on this, see here.
    • To balance your Schedule L, go to Balance Sheet, M-1, M-2, M-3 ⮕ Balance Sheet⮕ Federal ⮕ Assets ⮕ Liabilities and Equity.
      • For more info on this, see here.
      • For more info on the balance sheet rounding adjustment, see here.
    • If you need to manually enter items on Schedule M-1, go to Balance Sheet, M-1, M-2, M-3 ⮕ Schedule M-1, M-3 ⮕ Schedule M-1
      • For more info on this, as well as how the Schedule M-1 is calculated, see here.
11. Depending on the situation, additional forms and schedules will need to be completed. Here are a few other common scenarios:
    • If you need to generate Shareholder basis statements, go to Shareholder Information ⮕Shareholder's Basis, and complete all applicable info.
      • For more info on this, see here.
    • If you need to generate Schedules K-2 and K-3, go to Other Forms ⮕ Shareholders' Pro Rata Share Items - Int'l. (Sch. K-2).
      • For more info on this, including info on who must file, see here.
    • Add state specific inputs.
12. Once you’ve completed the return and validated all required information is entered with the required forms and schedules generating, you can either e-file the return, or print it for the purpose of review or paper-filing.
13. To send the Schedule K-1 packages to their respective recipients, see here.
    • You can also print the Schedule K-1 packages manually, if you’d like. For more info on this, see here.